The seasonal shopping frenzy is upon us again but this year UK consumers plan to keep a firm grip on their spending.

In a survey for Abbey, people said they expect to spend £423 on average, a slight drop (five per cent) from last year, when they expected to spend £446 each. The last three years’ spending predictions have all come in at under £450, in marked contrast to 2000 and 2001, when the average predicted spend was around £600.

However, there is a marked contrast between age groups. All those aged over 35 are planning to spend less, whilst the 15 to 34 year olds intend to spend more this year.

The most affluent Christmas spenders by far are likely to be aged 35 to 44. They intend to splash out an average of £622, although this is still five per cent less than last year (£654).

Despite a steady increase in consumer borrowing, the majority (70 per cent) of us will be funding the festivities by raiding our savings, although this is down slightly on last year (75 per cent).

Slightly fewer people plan to put off the cost of Christmas by paying on plastic - 19 per cent will use credit cards compared with 22 per cent last year. But one in ten people haven’t thought about how they’re going to pay for Christmas this year.

The seasonal shopping frenzy is upon us again but this year UK consumers plan to keep a firm grip on their spending.

In a survey for Abbey, people said they expect to spend £423 on average, a slight drop (five per cent) from last year, when they expected to spend £446 each. The last three years’ spending predictions have all come in at under £450, in marked contrast to 2000 and 2001, when the average predicted spend was around £600.

However, there is a marked contrast between age groups. All those aged over 35 are planning to spend less, whilst the 15 to 34 year olds intend to spend more this year.

The most affluent Christmas spenders by far are likely to be aged 35 to 44. They intend to splash out an average of £622, although this is still five per cent less than last year (£654).

Despite a steady increase in consumer borrowing, the majority (70 per cent) of us will be funding the festivities by raiding our savings, although this is down slightly on last year (75 per cent).

Slightly fewer people plan to put off the cost of Christmas by paying on plastic - 19 per cent will use credit cards compared with 22 per cent last year. But one in ten people haven’t thought about how they’re going to pay for Christmas this year.

Angus Porter, Customer Director at Abbey, says: “People are being realistic about what they can afford to spend on Christmas this year, and pretty sensible about how they’re going to pay for it."

"Four Bank of England base rate rises this year may be starting to bite. The under-35s are planning to spend more than last year and need to be careful but smart shoppers will be paying as they go with savings or talking to their banks about interest-free deals.”